What's the difference?
The Solterra AWD is the base grade in a two-model line-up and the first EV Subaru has offered in our market.
Created in partnership with Toyota, the Subaru Solterra is being launched alongside its Toyota twin, the bZ4X.
They share electrical and mechanical underpinnings, tech and even some internal styling but Subaru is only offering the Solterra as an AWD for the Australian market which reflects the brand's adventuring heart. Whereas, Toyota is offering some of its variants in a FWD format.
The Solterra competes against other medium SUV rivals, like the Kia EV6 and market-leading Tesla Model Y.
My family of three has put the base model through its paces so keep reading to see what we discovered!
The line between mainstream and luxury is getting blurier by the day. As cost-of-living pressures bite Australian families, anyone looking for a new car is looking to extract maximum value without sacrificing too much luxury.
Enter the new 2026 Hyundai Palisade Calligraphy. Sporting a bold and premium new look, loaded with more luxuries than ever before and powered by a new hybrid powertrain, the second-generation Palisade is a clear step forward from its predecessor.
As it should be, because it’s also significantly more than the previous Palisade Calligraphy. That puts it in the same ballpark as the Mazda CX-80 and range-topping Toyota Kluger, but it also means the Palisade is now no longer enormously cheaper than premium SUV options, such as the Land Rover Defender, Lexus RX and Volvo XC90.
So, is the new Palisade a luxury mainstream family transporter or a premium-priced SUV without the premium badge? We drove it to find out…
The new Subaru Solterra AWD gets a lot right and is a well-rounded effort in showcasing an electric medium SUV that has passenger comfort, sharp external styling and is easy to drive.
Once you start comparing it to some rivals, it doesn’t always come out ahead of the pack but I still like it for what it is. My seven-year old thinks its fun and very comfortable. He enjoys the easy practicality of getting in and out without any assistance, too.
So, is the new Palisade a luxury mainstream family transporter or a premium-priced SUV without the premium badge?
The reality is, it’s somewhere in the middle. The $14,000 price rise is a huge step up for family buyers, likely an insurmountable sum for many, which leaves them looking at the more affordable (but smaller) Santa Fe, waiting for a cheaper Palisade variant or going somewhere else entirely.
Having said all that, there’s no question, for those who can afford it, the new Palisade is a clear upgrade over the old model in every way. Especially the premium look and feel, which is a leap up, but also the driving experience, with its combination of potent but efficient powertrain and locally-tuned suspension.
So, for those who can afford it, the Palisade Calligraphy will provide a luxury experience at a lower price - which means it does offer good value, just at a higher price.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
The Solterra has its own vibe compared to the rest of the Subaru family and that’s most likely due to the Toyota partnering.
The tail-lights are sharply pronounced and the many pleats across the body panelling swing more towards Toyota styling than Subaru but it doesn't stick out like a sore thumb.
The heavy-use of black plastic mouldings on our test model's 'Smoked Carbon' paintwork looks okay but it wouldn't do any favours on a lighter colour.
The exterior on the whole looks bold and fun, and I like the fact that it's not pillowy in its shape as some of its rivals are. Those hunting for a sporty-looking EV will find something charming here.
The cabin is different from anything I’ve seen from Subaru so far. Some of it's fun, like the squared off steering wheel which looks rally car-ish but some of it’s odd, like the way the 7.0-inch digital instrument panel has been pushed back towards the windscreen in its own little nook.
The steering wheel can get in the way of viewing the graphics of the instrument panel and its placement looks disjointed from the rest of the dashboard elements.
The black and grey knit-looking cloth upholstery is warm and inviting and is found across the dashboard, seats and some door panels but there is enough cheap-looking black cloth throughout to detract from the general aesthetic. Had the Solterra not been pushing $70K, that wouldn't bother me, but it is, and it does.
The interior is pleasant but the exterior is definitely the highlight of the design.
Unlike many of its rivals that adopt a common design theme, Hyundai has made sure each of its models is dramatically different visually.
While there are some common elements that tie them together, comparing the new Palisade to the rest of Hyundai’s SUV range it’s clearly very different.
For the Palisade that means a deliberately big and bold exterior, with the vertically stacked headlights and large grille to create a unique look compared to either the Santa Fe or Ioniq 9. It’s the same at the rear, with more vertically stacked tail-lights.
That bold, premium design theme carries over to the interior, where there are some unmistakable Hyundai elements - like the steering wheel - but the soft, curved lines of the dashboard give it a distinct look compared to anything else the brand is offering at the moment.
Hyundai says the interior is inspired by premium furniture design and that rings true, but it’s also a noticeably tall dashboard, which gives a lot of visual depth to the interior.
To emphasise the premium furniture design and the flagship-nature of the Calligraphy, there are four different colour options for the Nappa leather interior - black, brown, dark charcoal (with brown stitching) and light grey/dark navy.
The practicality of the cabin is good for the class and the 212mm ground clearance means it's an easy car to get in and out of.
The extra-wide centre console makes the front look cramped but it isn't. And the the backseat is huge on space. Seriously decent headroom and legroom for the class and the flat floor means middle seaters will be comfortable, too.
Both the front and rear seats are well-cushioned and comfortable. You could easily do a long trip.
The driver's is the only powered seat (it also has lumbar support) but it's great that all but the middle seat feature a heat function for added comfort.
My seven-year old finds the back row comfortable because of its directional air vents and tall seating position providing a good view out of the wide window.
Individual storage is a bit low for the class but it does feature a handy shelf underneath the centre console which is large enough for a small handbag or the manual and logbook... because there is no glove box in this model!
To be fair, most are too small to be of real use outside of storing the 'ahem' manual and logbook.
Each door gets storage pockets and a skinny drink bottle holder and both rows get two cupholders. The rear gets map pockets too but that's it.
The boot features a tyre puncture repair kit, level loading space and 410L of boot capacity with all seats in use. The capacity is a bit lower than its rivals but has been adequate for my grocery run and the odd errand. It's great both Solterra models have a powered tailgate as standard.
The 12.3-inch touchscreen multimedia system looks good and is pulled directly from Toyota so the graphics and accessibility are on-point for everyday use.
You also get built-in satellite navigation which is always handy to have but you miss out on any over-the-air updates or a dedicated Subaru connected services app.
The rest of the technology is solid with each row getting two USB-C ports and the front also featuring a USB-A socket and 12-volt outlet.
The new Palisade is bigger in every dimension compared to the old model, and that helps translate into a roomy cabin, which in turn does help make it feel more premium.
As mentioned earlier, the Palisade comes with Hyundai’s Digital Key 2.0, which allows you to have a virtual key on your compatible smartphone, so you can lock/unlock and start the car without a physical key. The new fingerprint scanner, which is a small circular scanner in the centre console, allows you to program your Palisade to start by pressing your finger on the scanner.
While the Digital Key is a great concept and has obvious practical benefits, the fingerprint scanner doesn’t make much sense when you can also start the car by pressing the ‘start’ button.
Anyway, once you’re inside, the driver is treated to Hyundai’s ‘Ergo-motion’ seat, which can provide on-the-go massage. Both front seats are the brand’s relaxation seats, which can recline into a more comfortable position if you need to take a nap (obviously not when you’re driving).
In the second row the Palisade comes standard with a three-person bench, but for $1000 you can swap that out for a pair of captain’s chairs. Hyundai expects the split between these to be an even 50-50.
The third row is also a three-person bench, which means the Palisade can accommodate up to eight occupants, if needed. The third row would only accommodate three adults at a squeeze, but would be fine for younger children.
The second row seats can tilt out of the way at the press of a button, to make getting into the third row easier.
What’s really impressive about the Palisade Calligraphy cabin is the level of detail paid to making sure each seat is well looked after. Naturally there are cup/bottle holders and other small item storage spaces, but both the second and third rows get air-conditioning controls as well as heated seats (for the outboard positions), plus there are six 100W USB-C ports spread around the cabin. The front seats are heated and ventilated, and there’s also a UV sterilisation compartment in the front as well as a wireless charging pad.
Out the back the boot is a respectable 300 litres with the third row in use, but it expands to a roomy 712 litres with the third row stowed.
If you do need to fold down either the second or third row seats, you can do it at the press of a button in the boot. There’s also a 240-volt household outlet in the boot which allows you to run small electric devices.
There are two variants for the Solterra range and both come with dual-motored electric powertrains. Our test example is the base model, priced from $69,990, before on-road costs.
Compared to its dual-motored rivals it’s almost as affordable as the Tesla Model Y Long Range priced from $69,900 MSRP, with the Toyota bZ4X AWD at $74,900 MSRP and the Kia EV6 GT-Line almost $20K more expensive at $87,590 MSRP.
However, its rivals sit at higher grade levels and some items on the Solterra AWD, like its cloth seats and manually adjustable front passenger seat, remind you it is still a ‘base’ model.
That said, the Solterra AWD is well-specified for an entry model with standard features like heated front seats, a heated steering wheel, power-adjustable driver's seat, power-adjustable lumbar support (driver only) and even the rear outboard seats have a heat function.
The technology features a 12.3-inch touchscreen multimedia system, built-in satellite navigation, wireless Apple CarPlay and Android Auto, two fast USB-C ports in each row and a clear 360-degree camera system.
For practicality, it features a powered tailgate, tyre puncture repair kit and remote air-conditioning start (from the key fob) to set your ideal cabin climate before you get in.
Hyundai has opted to launch with only the Calligraphy grade for now, but that won’t be the end of the Palisade range. The more rugged XRT Pro variant will be coming in 2026, but no details are locked in just yet in terms of timing or pricing.
So, for now there is just one Palisade to pick, the Calligraphy priced from $89,900 (plus on-road costs). That’s a whopping $14,000 more expensive than the model it replaces, which is a huge jump regardless of the many changes Hyundai has made.
To be fair to Hyundai, the range-topping Kluger Hybrid Grande will set you back $85,135 (plus on-roads), so they’re in the same ballpark. But both are quite pricey for mainstream, family SUVs, especially in the current economic times.
Fortunately, Hyundai has been very generous with standard equipment, befitting the Calligraphy badge. This includes 21-inch alloy wheels, LED headlights and tail-lights, sunroof, a 14-speaker Bose sound system, leather-appointed upholstery, inbuilt navigation as well as Apple CarPlay and Android Auto. There’s also Hyundai’s 'Digital Key 2.0', which launched on the recent Ioniq 9 and an all-new fingerprint scanner - more on those below.
The Solterra AWD has dual electric motors producing a combined 160kW for power and 337Nm of torque. It’s got enough grunt to be fun and zippy, even on the open road, but isn’t as powerful as some of its dual-motored rivals.
For example, the Kia EV6 GT-Line produces 239kW/605Nm, which looks almost indecent compared to the Solterra's specs.
Hyundai has replaced both the old 2.2-litre turbo-diesel and the 3.8-litre V6 petrol with an all-new hybrid powertrain.
Officially known as the 'TMED-II' hybrid system, the set-up combines a new 2.5-litre turbocharged petrol engine with a freshly developed hybrid system that integrates two electric motors, instead of just one.
It’s a very complex set-up that Hyundai spent many spreadsheet graphics explaining, but in simple terms, the two motors are mounted between the engine and the transmission and one motor is dedicated to creating power and the second one to drive the wheels.
The end result is the new Palisade makes a healthy 245kW of power and 460Nm of torque, whilst also being quite fuel efficient.
The benefit of motors which aren't 'performance' grade means you win out eventually with energy consumption and its here the Solterra AWD shines.
The official combined cycle energy consumption figure is a low 14.1kWh/100km and I averaged 15.2kWh after a week of mostly urban driving.
The consumption is fantastic but the official driving range from the large 71.4kWh lithium-ion battery is only up to 414km (WLTP), which, again, is lower than most of its rivals by a good portion. I would have range anxiety on a longer journey.
The Solterra has a Type 2 CCS charging port which means you can benefit from faster DC charging speeds (up to 150kW on DC power).
On a 150kW DC system you can go from 0-80 per cent in just 30 minutes.
On a 7.0kW AC power charger, you can go from 0-100 per cent in 9.5-hours and that drops to 6.5 hours on an 11kW system. Which isn’t as fast as it you might like but still makes it worthwhile plugging in while you're frequently the local shops.
Hyundai claims this new hybrid set-up allows for a short amount of all-electric driving range, although it doesn’t reveal how far, but its main priority is to improve fuel economy while creating a viable alternative to the increasingly unpopular turbo-diesel engines.
Which it arguably manages to do quite well. Despite being a full-size SUV capable of accommodating up to eight occupants, the Palisade has a claimed fuel economy rating of just 6.8L/100km, which is an impressively small number for such a sizable vehicle.
While we couldn’t achieve that number on our predominantly open-road test drive, we still returned a solid 8.6L/100km, which is good given the conditions.
The Palisade is fitted with a relatively large 72-litre fuel tank, which means if you can hit the official claim, there is a theoretical driving range of more than 1000km.
The Solterra underlines in bold everything you would expect from a Subaru. The power delivery is well balanced, it grips the road and the handling is comfortable.
Even when cornering there’s not a lot of passenger movement and the steering is on the right side of firm. Manoeuvring is nimble and fun thanks to an the 11.2-metre turning circle that also makes it easy to park.
The 360-degree camera system is top notch and you get great visibility out of the windows. Being only 4690mm in length and 1650mm tall even the smallest city carparks shouldn't daunt you.
The ride comfort is very good with suspension that absorbs the bumps well enough that they don’t bother you. There is a little road noise but not enough to annoy and overall the ride is refined.
While it may look like a small engine of paper, the hybrid system provides good performance. It offers plenty of punch when you need it, not labouring up hills or when overtaking. But it’s also very quiet and smooth at lower speeds and when cruising, so the powertrain gets good marks.
The Palisade is also pleasant to drive thanks to its locally-tuned suspension and steering. Hyundai has returned to a local ride and handling program, after wavering in the aftermath of the pandemic. Engineers from Hyundai’s Korean headquarters came out to assist and ensure it was as well suited to our unique road conditions.
The result is a large SUV with good body control but also good compliance, which means it feels responsive to driver inputs but the suspension is still able to soak up bumps with relative ease. At no point does it feel crashy or harsh, instead it has a very relaxed driving character.
The Solterra comes with great standard safety features like forward collision warning, blind-spot monitoring, driver attention alert, safe exit warning, LED DRLs, rear cross-traffic alert, lane-departure alert and keeping aid, adaptive cruise control, traffic sign recognition, front and rear parking sensors and a clear 360-degree camera system.
It also features a digital rearview mirror, which is handy when you have a carload of passengers or gear. While you're aware of all of the safety items none of them are intrusive, which is awesome.
The Solterra has seven airbags, including a front centre airbag and a maximum five-star ANCAP safety rating from testing done in 2022. Its twin, the Toyota bZ4X was the tested model.
The Solterra has AEB which is operational from 5.0-80km/h for pedestrian and cyclist detection and up to 180km/h for cars.
There are ISOFIX child-seat mounts on the rear outboard seats and three top-tether anchor points across the second row.
Two child seats will fit best and I had no trouble fitting my monster booster seat.
Safety was a controversial topic with the first-generation Palisade, with some minor safety systems missed during the rush to get it secured in right-hand drive production, ANCAP decided to test it and publicly slam Hyundai for offering a four-star model. Only to quickly upgrade it to five-stars when Hyundai added the missing safety tech, as planned, when it did the mid-life refresh.
So, after ANCAP’s questionable approach last time, Hyundai took no chances this time around and is confident it will score a maximum five stars when it is tested. No stone was left unturned with the addition of all the required active safety systems and even deleted the central lamp that runs across the grille in other market models.
It has all the usual suspects, including autonomous emergency braking, lane change assist and rear cross-traffic alert, but also gets the more advanced systems like forward junction assist. There are plenty of passive systems, including airbag coverage for all three rows.
Unfortunately, Hyundai still has some work to do on implementing these systems in a seamless manner. The brand has made some improvements, but there are still a lot of ‘bings’ and ‘bongs’ when you change speed limits, veer too close to a lane marking or similar.
It’s great to have these safety systems, but only if they work well enough so you leave them on and pay attention to them.
The Solterra comes with a usual warranty term of five-years/unlimited km and the battery is covered by an eight-year or up to 160,000km warranty term.
However, one of the best things about the Solterra has to be the free servicing (yes, you read that right) for five years or up to 75,000km.
Servicing intervals are more in line with a fuel-based car at every 12 months or 15,000km. But, hey, free is free!
Hyundai has recently introduced a seven-year, unlimited kilometre warranty, which covers the new Palisade.
Of course, Hyundai is one of the best established car brands in the Australian market, and has a nationwide dealership network so factory servicing should be easy for most owners. This is a major advantage in these changing times with some many new brands looking to make a mark in Australia with modest foundations.
Service intervals are every 12 months or 10,000km, the latter is a bit shorter than average. And the capped price servicing plan only runs for five years. Costs vary from $397 for a minor check-up to $674 for your fourth visit, but over the course of the five years you’ll pay out $2600.